Why Thesis Is Your Ideal Partner

Our founders have individually completed $10B + in transaction value, and have personally acquired, run, grown, and successfully exited and recapitalized multiple companies in the lower middle market.

About Thesis Capital

We bring patient capital and highly relevant industry expertise to acquisition opportunities of US-based, capital-light businesses in the arena of Business to Business (B2B), Business to Government (B2G), Healthcare, Software, Manufacturing, and Services verticals.‍
Thesis Capital Overview

580

+

Employees Across All Our Portfolio Companies

$

1

B+

The average capital base of the partners from whom we draw financial support, including family offices and funds

5

Platform Transactions Since Inception

headquartered in Houston, Texas

Partnership with you won't be our first rodeo

We only make investments that:

  • Are simple to understand where we have expertise
  • Have a durable competitive advantage and a stable diverse client base
  • Are led by a healthy layer of non-owner management with integrity & capability
  • Occur at attractive prices and a margin of safety

Criteria for Private Companies
  • Large
  • Growing
  • Low operational complexity
  • Historically profitable, not in decline, and attractive to lenders
  • A large number of firms in the industry provide both acquisition targets and opportunities to exit
  • Fragmented – lack of dominant competitors or customers in the industry provide both acquisition targets and opportunities to exit
Company
  • Attractive valuation
  • Stable contractual relationships
  • Motivated seller for non-business reasons
  • Strong middle management willing to remain
  • Product and service differentiation exists or can be created
  • Growth potential via organic sales growth, geographic expansion, product and service extension, and follow-on acquisitions
  • Long product or service life cycles, not subject to rapid technological change or obsolesce or requiring substantial additional R&D
Financials
  • Strong and sustainable net profit margins ( ideally 15%+ net margins )
  • Realistic liquidity options in 3-6 years
  • Balance of revenue is predictable, stable, and recurring
  • History of profitability, generating at least $3 million of owner earnings
  • Not a business in decline
  • Low to moderate capital intensity, creating the ability to generate high returns on tangible capital
  • Cash flow and assets sufficient to attract and service acquisition capital structure
  • $5+ million in revenues